Modelling Organizational Performance Manufacturing Companies in Indonesia: Feature Extraction

Abstract

Purpose: The purpose of this research is to investigate the effect of knowledge sharing and Organizational Learning on Innovation and Organizational Performance, the innovation role as a mediator of knowledge sharing and Organizational.
 
 Theoretical framework: Good organizational learning affects organizational performance (Kittikunchotiwut, 2020). Besides, the company need not only source for information from the external environment. Rather, it also needs to search internally to create new ideas and organizational learning conducive and acceptable to the employees (Millmore, 2007). knowledge sharing in the organization ultimately contributes to employee performance Buckley & Carter (2002).
 
 Design/methodology/approach: This is causality research with a sample comprising of 217 managers of manufacturing companies in East Java, Indonesia. Primary data were obtained using an instrument in the form of a questionnaire and analyzed using the PLS-SEM approach. Structural equation modeling is employed to explain the relationship between variables and the mediating effects.
 
 Findings: The results showed knowledge sharing and organizational learning had a direct effect on innovation and organizational performance. Furthermore, the findings illustrate that innovation was able to mediate the impact of organizational learning on organizational performance, but was unable to mediate knowledge sharing on organizational performance.
 
 Research, Practical & Social implications: Knowledge sharing, organizational learning and innovation have been proven to improve organizational performance. Moreover, the managers need to convey a clear message to employees that the organization feels responsible for and appreciates them. The next step of this research topic are investigating spatial factor and changing in social live regarding with organizational performance.
 
 Originality/value: This reasearch focusses on studying effect of knowledge sharing and Organizational Learning on Innovation and Organizational Performance, the innovation role as a mediator. The higher the implementation of organizational learning and knowledge sharing, the higher the performance will be. The implementation of knowledge sharing in organizations causes employees to directly interact with their most knowledgeable colleagues, thereby acquiring new ideas and ultimately embracing innovation.

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